North Carolina Down Payment Support Systems

Payments Gateway - These programs would be the deposit Assistance System along with the Mortgage Credit Certificate.

If you qualify for one of these programs and also you purchase a home between January 1, 2009 and December 1, 2009, you may also be eligible for the $8,000 tax credit just enacted into law.

First, who is a first-time Home Buyer? A first-time Home Buyer is someone who hasn't owned a house in the previous three years. It is exactly the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

The MCC takes this a step farther. An MCC “reduces your tax liability based on a share of the mortgage interest which you pay.

You are able to claim 20% of the interest you pay as a credit on your own federal income taxes, should you are eligible for the MCC. You can save as much as .

If you do qualify for the MCC you may find a way to join this. This would reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and any individual expected to live in the dwelling who is 18 years of age or older.”

The income and house price limits Durham and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Persons $61,500 3 Individuals $70,500 4 Men $70,500

MCC Sales Price Limits New Home $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Help?

Home buyers that want help with their down payment and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer just has to pay and the load would pay up to $8,000 of the remaining balance.

This plan has more stringent income limits than the MCC program summarized above. Like the MCC application, it may be used together with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment help, nevertheless, can not be used in conjunction together with the MCC. That is an either or situation.

House price limits that apply in Durham Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Men $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing Residence $210,000